ODRO
After years of being perceived as a fringe element, cryptocurrency is going mainstream – and being taken more seriously by the financial establishment.
But the reality of crypto trading resembles something far closer to a casino than a stock market. And a growing number of people – mainly young men – are becoming addicted to it as a new form of gambling.
The extreme volatility of the crypto market draws in those with addictive personalities. Albert*, 35, became hooked, his investing turning to addiction as he chased the highs it brought.
“A stock might move 10pc at most in a day. But cryptocurrency prices can jump 300pc in the same period, which really excited me at the start,” he says.
But while a bad trade in the stock market could see you lose something like 20pc of an investment over the course of several months, in crypto, 90pc drops in price are common.
After he initially enjoyed rampant success in the market several years ago, when he turned $20,000 (£15,600) into $500,000, he continued to chase the dopamine high he’d experienced. Within a few years, he’d gambled away everything he had on the crypto markets, resorting to stealing from his family and embezzling funds from their business to fuel his addiction.
“When you’re doing well, you feel more confident, you want more,” he says. “The rush of dopamine you get from doing well in cryptocurrency is far stronger than regular gambling. I’d always dreamed of becoming rich very quickly, and crypto gave me that opportunity.
“But then I started to lose, and I was determined to make my money back, so I started to take money from my family, including my wife. I was working for my family business, but I’d spend the whole day checking cryptocurrency charts. I was in an administrative position and I started to take money from the company without consent.
“Making so much money from crypto is the worst thing that can happen to a person. I regret ever being involved in it,” he said.
